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Your bank should be able to offer you a Blended Rate, and should waive the Pay Out Penalties.
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If by some unforeseen circumstance your income is reduced you might be forced to pay off the loan at a slower rate.
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I asked the question mentioned here (2 payments a month or 1 payment every two weeks) and was told that I'm making a half payment every two weeks.
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They also offer Foreclosure Refinance and Foreclosure Bailout Loans if you qualify.
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